MONTREAL, CANADA, Nov 28, 2011 (MARKETWIRE via COMTEX) -- Paladin Labs Inc. ("Paladin"), a leading Canadian specialty pharmaceutical company, today announced that it has entered into a licensing and distribution agreement with Immuron Limited (asx:IMC), an Australian-based biopharmaceutical company, under which Paladin receives the exclusive rights to market and sell Travelan(R) in Canada, Latin America (including Brazil and Mexico) and Sub-Saharan Africa (including South Africa). Travelan(R) is a novel, other the counter ("OTC") product for the prevention of Travellers' Diarrhea. According to the U.S. Centers for Disease Control and Prevention, each year between 20% - 50% of international travelers, an estimated 10 million persons, develop diarrhea. In addition, Paladin also received an option to acquire the same territorial rights to Immuron's influenza product candidate (IMM 255) which is currently under development.
Under the terms of this agreement, Paladin will pay CAD $500,000 upfront and provide a series of potential sales performance milestone payments that can total up to CAD $115 million. In addition, Immuron and Paladin have also entered into a funding agreement, subject to certain closing conditions, under which Paladin will provide up to CAD $1.5 million at a rate of interest of 10% to Immuron for the ongoing global commercialization of Travelan(R) and future product development in the form of a secured convertible debenture. Further financial details related to the agreement were not disclosed.
"This transaction continues to demonstrate Paladin's appetite and capability to build both its OTC and international business," said Mark Beaudet, Interim President and CEO of Paladin. "Travelan(R) is unique in that it will be the only OTC product indicated for the prevention of traveller's diarrhea, the most common illness that affects travellers. Travelan(R) will complement our Kaopectate(R) brand in Canada and will add further critical mass to our OTC portfolio that includes well known consumer brands like Plan B(R), Tempra(R), Anbesol(R) and Zincofax(R). In Latin America and Sub-Saharan Africa, Travelan(R) will become another important piece of our future growth and expansion in markets that are becoming increasingly important for our business and future strategy."
"We are very excited to partner with Paladin in Canada, Latin America and Sub-Saharan Africa," said Joe Baini, CEO of Immuron. "This is a major event for Immuron and we have confidence in the market potential of Travelan(R) in these geographies given the continued strong sales in Australia by our local partner Nycomed. We have confidence in Paladin's track record and abilities to maximize the commercial potential of Travelan(R)".
Travelan(R) is a natural product which is specifically designed to reduce the risk of infection by ETEC, the most common cause of Travellers' Diarrhea. In clinical trials, Travelan(R) showed protection of up to 90% efficacy against infection with the type of E.coli that causes Travellers' Diarrhea. In addition, trials showed a significant reduction in abdominal cramps and stomach pain compared to those who did not receive Travelan(R). There were no reported side effects in the clinical trials.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at www.paladinlabs.com .
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com .
Paladin Labs Inc.
Samira Sakhia, CA, MBA
Chief Financial Officer
SOURCE: Paladin Labs Inc.